BiggerPockets

Hey folks. I am a full time agent, I started out about 2 years ago. I am on a team so I can focus most of my time prospecting. I call FSBOs, Expireds, and Cancelleds all day. I manage to set up 2 appointments a week for my team.

I am however starting to doubt if there is any value in using an agent.

What are we actually doing for the home owner, or buyer that makes us worth the commission. What are we doing that they couldn't do themselves?

How can I turn one prospect into a referral client for life?

How can I turn one prospect into a referral client for life?

Under promise and over perform.

I believe that it is like any business putting a clients needs first and trying to understand what the client needs are. Active listening is an important skill that can help you perhaps even understand what a client wants and needs better than they do.

As a customer, I would expect a real estate agent to know their market area very well. Have some idea of demographics, zoning, neighborhoods, etc. I would expect an agent to have good negotiating skills though I would want to do most of my own negotiating.

It also depends on who the agent is serving.

If an agent is primarily a listing agent, then get the property listed on the MLS and otherwise getting the word out that the property is available for sale. Making it easy to see the property so as to increase the chances of multiple offers or better offers.

A buyers agent that strives to fully understand what their client is looking for and scours listing and other sources to find them. This can be a process that takes patience and may require an agent to come up with creative ways of helping their clients understand what they are looking for. I'm sure that some clients have a very general idea of what they want. It is not very helpful, when someone says they are looking for any home that they might buy & flip for profit.

From an Investors point of view: Read fully so you don't kill me!

Most RE Agents are not that great...it's the 80/20 principle. 20% of the agents have 80% of the business. The 80% just aren't that great. It seems the days of just listing a house isn't enough and open houses are not that effective. I've sold houses on Craigs list and made a killing so it's getting harder for RE to compete with FSBO. Though, the MLS is extremely valuable so a catch 22.

Now, out of that that 20% RE agent that likes to work with investors is WORTH EVERY COMMISSION paid! Yeah, it's easy to sell one house every few month but when you start selling a lot...different story. We're actually looking for RE agents that can sell houses...not just list them; and can work with investors. We're now at that point where for us to grow we need to outsource more.

So again, if you can find an agent that can sell, pay them well! We're all limited by the amount of time so focus on system building!

So here is a question: What 3 questions would you ask for an Agent to get the best selling agent possible?

Ron

I think that 20% is made up by agents that cold call/ prospect everyday. Have an in depth understanding of the markets they are trying to sell homes in, and are proactive in their approach to selling. Utilize every facet to expose the property.

The only draw back to a top producing agent that some people will not contend with is they price properties so they sell fast.

Probably the #1 affective thing so far that I've heard from other agents, "is just calling a buyer or buyer agent back". I'm not even that great at calling everyone back, even though I have a live attendant already ask most of the questions I need to know that is sent to me via email/cell phone. Doh! So, i'm guilty of this one and I'm not even an Realtor!

It also helps that the agent uses a good follow up system, weather it is a day planner, CRM, online took, or even Outlook; as long as they actually use it effectively.

A new Realtor that we are trying out to sell our houses uses social media, respond to question though other listing sites besides MLS (ie Zillow, Yahoo, etc), and not afraid of doing things outside of the Realtor world (ie she'll call on FSBO).

Trust me, if they perform just at 90% of what we do, then we'll send them business for life! Of course, results is top priority, but Will Rogers and Woody Allen said it perfectly, "90% of success is just showing up!".

That's where a great agent comes in. The value of a great agent is as follows:

- Ensuring a GREAT MLS listing. This means professional pictures, enticing copy, etc. A great listing will generate far more interest than a not-so-great listing, and first impressions tend to last;

- Networking. My wife is the agent for our houses (and only for our houses, no others). She has a reputation of putting out a great product (great rehab, well staged, attentive to detail, she turns all lights before every showing, etc), and has a list of about 3 dozen buyers agents who want to know the minute she puts a house on the market, because those agents know it will be a great value. A great agent will get you a dozen showings on the first day because s/he has a network of buyer's agents who know and trust the products they put on the market.

- Control of your deals. A great agent will know how to get things done -- from making sure the mortgage broker is on top of things to making sure the closing attorney is on top of things to make sure the inspectors and appraisers are well taken care of. This means a typical deal will go smoothly and will close on time. That's rare these days.

- Negotiation. A great agent will know how to help you negotiate the best price for your property and will help you continue to negotiate through the due diligence process and through the closing. Great agents know the values of the properties they're selling, and can use the data they have to ensure the investor gets every penny he deserves.

Again, I'm not saying a great investor can't do these things without an agent, but I'd venture to guess that most investors don't have all these skills and therefore a great agent is invaluable...

Just my $.02...

The value of a good real estate agent is the same as the value of a good carpenter or plumber. I almost always use a real estate agent to sell my properties - for three main reasons.

1- I'd rather spend the time on more profitable aspects of my real estate investing - same reason I use property managers

2- I want a buffer between myself and the buyer or seller, someone who can say things to the other party or the other parties representative and be more convincing then if it came from me as buyer or seller.

3- A good agent is a good salesperson. I am not a salesperson, my expertise is investing, not selling.

I liked Jason's post. The good agent can save you lots of time and as we all know...time is $$$. Although, I can do my own plumbing, I hire one to do the work. I'm a firm believer that you first take care of your business. Use a good agent to find deals, market and sell your properties and spend your time over seeing the big picture and getting more investments.

Another thing that I have not seen mentioned would be that for a lot of sellers and buyers, emotions can play a big part in a transaction. A good agent can offer the perspective gained by experience in the real estate field and smooth out the emotional glitches that often insert themselves into deals.
Bill

If the company was that bad, why did you stay for 2 years!?!? There are lots of brokerages, and if you're unhappy where you are, find another.

I'm starting to understand why you're so "anti-realtor" now, but to be honest, it sounds like at least part of it is your own fault for not taking control of the situation earlier...